Unanticipated times require people to make unforeseen changes at a moment’s notice. On March 20th, 2020, Governor Gavin Newsom issued a state-wide stay-at-home order requiring employees from all businesses categorized as non-essential to work from home. These new orders required many Californians to swiftly change their daily commute to the office with a commute to their new home offices. With these unprecedented changes, many people aren’t familiar with how California Law works on reimbursements for work from home-related expenses. The question remains, what work from home-related expenses are your employers obligated to reimburse you for?
California Labor Code §2802 requires employers to reimburse their employees for the “necessary expenditures and losses incurred by the employee in direct consequence of the discharge of his or her duties.” Simply stated, an employer is required to reimburse employees who have spent their own money for business-related expenses. These reimbursements are also non-taxable since the IRS does not recognize them as wages or income.
What constitutes a Reimbursable Expense?
Suppose you are working for a company as a secretary and as of March 20th are required to start working from home. Typically, your job duties are to answer the phone, schedule events on an online calendar, and send emails to employees within the company. How do you go about your doing your job without being at your desk?
If doing your job at home requires you to use your personal cell phone, home internet, and personal computer then your employer is required to reimburse you for those necessary expenses required to do your job. As an employee, when determining whether you are entitled to a reimbursement, ask yourself whether that item is necessary to work for your employer. If you can’t work without that item, you’re likely entitled to reimbursement.
Some examples of reimbursable expenses are:
- Fax machines
- Telecommunication software
- Stamps or postage
- Vehicle Mileage and gasoline
- Parking and tolls
- Registration fees for conferences
How to calculate reimbursements
Reimbursements are meant to be returned to the employer in the proportion of usage. This means if you are using your personal cellphone for work 50% of the time, you should be reimbursed for 50% by your employer. However, many employers in California are willing to cover the entirety. As an employee, before putting in the full amount of these bills, it’s best to speak with your employer about these types of reimbursement before placing them on your employee expense reports.
Additionally, reimbursement does not extend to things that are simply more convenient or unnecessary, such as a more comfortable office chair, higher speed internet, or a larger computer monitor. Thus, if the expense is not necessary for the employee to perform his or her work, the employer is not required to reimburse them.
What should I do if my employer isn’t reimbursing me?
California employees who feel like their employer may not have reasonably reimbursed them for work-related expenses may be entitled to compensation from their employers. Employees may be able to recover the amount owed to them along with interest and attorney fees for employers failing to reasonably reimburse them. Barahmand Law Group has experience handling employment law matters in California. Our managing attorney Navid Barahmand can discuss your rights with you and help with a course of action that best suits your needs. Call us now at (818) 574-3355 for your free case evaluation. We charge no fee unless you win!
